Independent Living Center of S v. Sandra Shewry

BACKGROUND

In Independent Living, we addressed an issue raised by AB 5, which added §§ 14105.19 and 14166.245 to the California Welfare and Institutions Code. These sections combined to reduce payments under California’s Medi-Cal fee-for-service program to various health care providers by ten percent. Id. at 649. The cuts were scheduled to take effect on July 1, 2008. Id. We held that in implementing the rate reductions man- dated by AB 5, the Director violated 42 U.S.C. § 1396(a)(30)(A) (hereafter § 30(A)). Id. at 652. We also held that the Appellees/Appellants (Independent Living) were enti- tled to retroactive relief, in the form of monetary damages, because the state had waived sovereign immunity. Id. at 662.

The Director now advises us that AB 1183 became effec- tive on September 30, 2008, and amended § 14105.19(b)(1) to provide that the ten percent rate reductions previously called for in AB 5 would end on February 28, 2009. AB 1183 also added § 14105.191, which provided for either one percent or five percent rate reductions, depending on the service pro- vider. AB 1183 is the subject of ongoing litigation, including at least three appeals soon to be argued before our…